What is Web3? Distinguishing Web3 and Web 3.0

What is the definition of web3?

What is Web3?

Web3 is a term that describes a vision of a new generation of the internet with a decentralized, open-source, distributed structure and not controlled by any centralized entity .

The Web3 model is built on blockchain technology and cryptocurrency to create a secure, safe, transparent, fair space that gives control to users .

Specifically, data in Web3 is stored on a blockchain network, eliminating the involvement or manipulation of a centralized third party. Users can interact directly with each other and with the content they are accessing, instead of relying on centralized servers or data centers.

The term “Web3” was first introduced in 2014 by Gavin Wood, co-founder of the Ethereum blockchain .

What is the difference between Web3 and Web 3.0?

Both Web3 and Web3.0 are similar in that they aim to create a better version of the internet by giving control and ownership of data to the users.

However, the difference between Web3 and Web 3.0 lies in the focus of operations, technology for data security, and how data is managed.

First is the focus of activity:

Web 3.0 (semantic web) focuses on efficiency and smarter interaction by linking and reusing data across web pages.
Web3 (decentralized web) focuses more on security and empowerment by giving full control of data and identity to the users.

Second is technology:

Web 3.0 is built on the client/server model using the HTTP/HTTPS protocol, along with semantic-related technologies for data exchange such as RDF, SPARQL, OWL and SKOS.
Web3 uses protocols built on blockchain technology.

Third is how to manage data:

Web 3.0 uses a centralized data system called Solid Pod to store all data and issue WebID as the user’s identity.
Web3 uses a crypto wallet to store user data. In essence, this wallet stores private keys that allow users to access and use assets stored on the blockchain network.

Fourth is data security:

In Web 3.0, data can be easily modified because it is stored in a centralized Solid Pod system.
In Web3, data cannot be modified, deleted or manipulated because it is stored on a distributed network of blockchain nodes .

However, it is worth noting here that both web3 and web 3.0 are still under construction and in their infancy and have not been fully deployed yet.

Web3 Components

There are four main components that make up a Web3 model, including:

Blockchain: This is the fundamental platform of Web3.
Smart contract : These are smart digital contracts programmed on the blockchain platform.
EVM (Ethereum Virtual Machine): A virtual machine created to run smart contracts on the Ethereum platform. EVM ensures integrity and reliability in the execution of smart contracts on the Ethereum blockchain.
Front-end: The front-end is the user interface part of a Web3 application. It represents the part that users interact with directly, including websites, mobile apps, and other user interfaces. The front-end of a Web3 application can be built using popular technologies like HTML, CSS, and JavaScript, and it interacts with blockchains and smart contracts through Web3 protocols like JSON-RPC or Web3.js.

Web3 Infrastructure & How It Works

Infrastructure

Web3 infrastructure is developed with 4 main technology layers:

Edge Computing: While Web 2.0 changed conventional personal computing technology in data centers, Web3 pushes the data center to the edge and puts it in the hands of users.
Decentralized Data Network Systems: Users will own their data on Web3 because data is decentralized. Different data sources can sell or share data without losing ownership or relying on intermediaries through decentralized data network systems.
Artificial Intelligence and Machine Learning: Artificial intelligence algorithms and machine learning technology have advanced to the point where they can generate useful, sometimes life-saving, predictions and actions.
Blockchain: Blockchain uses smart contracts to execute transactions. These smart contracts define the semantics of a Web3 application.

How it works

Web3 works by combining the above 4 advanced technology layers to create a decentralized, secure and integrity-based environment. This makes the experience of searching for information on the internet faster, easier and more efficient than ever before, even for complex searches, in less time.

Using Web 2.0, users need to interact with the interface, in other words, interact with the front end. Then the front end communicates with the back end and a centralized database to store and transmit the results via the web browser.

Web3 works differently. Web3 does not use a centralized database and there is no centralized web server. Instead, Web3 is based on blockchain technology.

Applications developed by developers will have logic defined in smart contracts and deployed on computers in a decentralized state. This means that data and decisions are not dependent on a single intermediary organization, but instead are made by the user community and ensure fairness and transparency.

Advantages and disadvantages of Web3

The main purpose of creating Web3 is to solve the problem of centralized data storage of Web 2.0. Although this brings a lot of value to users, there are still certain limitations because Web3 is still in its infancy.

Advantage

Web3 helps to overcome the limitations of Web 2.0 and transforms them into some of the following salient features:

Highly Decentralized: Instead of being controlled by decentralized organizations, ownership is distributed between users and developers.
Peer-to-peer ( P2P ) interaction: Web3 encourages direct interaction models between users without the need for third-party intermediaries like Google or controlled payment platforms like banks.
Decentralized data and guaranteed ownership: Web3 proposes decentralized data models where users control and own their personal data. This helps prevent hackers from being able to take control of the data and profit from it.
Has a dedicated payment system: Web3 encourages the use of cryptocurrencies and cryptographic payment technology to make online transactions instead of relying on the infrastructure of financial institutions and banks.
Transparent, secure and trustworthy information network: Users can verify and authenticate information on-chain, completely transparent and clear while still ensuring their privacy and identity.

decentralized web3 — Web3 has a transparent, secure and decentralized information network.

For example, with Web 2.0, to transfer money to another person, users have to rely on banking applications and provide necessary information, the bank can track and block your transaction.

With Web3, users can freely transfer money to anyone with just a non-custodial wallet like Godex Wallet or Ramper Wallet, these transactions can happen anytime and anywhere.

Another example is that with Web3 we can borrow various assets in lending protocols like Compound or Aave freely without having to trust the lender. Everything is transparent and verifiable on-chain.

This can be made possible by breakthroughs in many areas such as:

Hardware advancements help develop upper technologies like blockchain and AI.
Blockchain networks help increase decentralization, transparency and no dependence on third parties.
Advances in AI and ML, while still in their infancy, if developed on decentralized networks will enable applications far beyond the present.

In general, it can be seen that the above outstanding advantages of Web3 are somewhat similar to the advantages that blockchain technology brings. Therefore, the development of blockchain is also a factor promoting the formation of Web3.

web3 blockchain — Blockchain Development Drives Web3 Growth

Limit

Despite its great potential for growth, it must be admitted that Web3 is still in its infancy. Some limitations include:

Scalability: There is still a big gap between Web 2.0 and Web3 in terms of scalability, processing speed, cost…
UX: The user experience is still not really good because to participate in Web3 products like DeFi applications, users need to learn new knowledge, download new software and perform many different steps. This is a barrier to global access.
Accessibility: Applications are mostly built independently rather than integrated with popular and familiar Web 2.0 applications, reducing accessibility to users.
Cost: The cost of developing a project is very expensive, dApps often have difficulty putting code on the blockchain because of Ethereum’s gas fees or the cost of auditing is also very high.

Although there are limitations, all of them are gradually being overcome. Being in the early stages and having many problems to solve also means opening up many opportunities for people who believe in the future of Web3 and develop related products.

Applications of Web3

Applications of Web3 in life

Web3 offers many potential applications in various fields. Here are some examples of Web3 applications in life:

Personal Data Management: With Web3, users have ownership and control over their personal data. Instead of allowing large companies to collect and exploit personal data, Web3 allows users to decide whether they want to share information and can receive compensation or rewards for sharing data.
Health and medicine: Web3 can be applied in the health and medicine field, allowing users to control and share their medical data securely and privately.
Education and Training: Web3 applications can create decentralized learning environments where learners can access learning content and certifications independently.
Sharing Economy: Web3 enables the creation of decentralized business platforms where users do not need to go through traditional intermediaries.
Digital Art and Content Creation: Web3 opens up opportunities for artists, creators and creative content creators to interact directly with fans and earn income from their work.

Web3 applications with crypto

With blockchain at its core, Web3 enables a range of new applications and services in the cryptocurrency space such as:

DeFi : Decentralized blockchain technology is being used as a platform for decentralized finance (DeFi), a new use case for Web3 that enables the provision of financial services beyond the constraints of traditional centralized banking infrastructure.
Cryptocurrencies: Web3 provides an environment for the development of decentralized currencies (cryptocurrencies), such as Bitcoin and Ethereum, that aim to differentiate themselves from the traditional cash world.
DApp : Decentralized applications (dApps) are built on blockchain platforms and use smart contracts to support service delivery.
Cross-chain bridge : In the Web3 era, there are many different blockchains, and bridges between these chains provide a kind of connection between them.
DAOs : DAOs have the potential to take on the role of Web3’s governing bodies, providing some decentralized governance and management structures.

How to become a Web3 Developer?

To become a successful Web3 developer, you need to have some essential skills to work with related technologies and tools.

Here are some important skills for Web3 developers:

Blockchain Knowledge: Understanding the principles and how blockchain works is fundamental to working with Web3. This includes understanding the concept of blockchain systems, the protocols and algorithms involved, as well as the concepts of encryption and security.
Knowledge of smart contracts: These are self-executing programs deployed on the blockchain. Understanding and using programming languages such as Solidity, Vyper or Rust is a necessary requirement.
Programming Languages: Popular programming languages like JavaScript, Python or TypeScript are useful for Web3 application development. For dApp development, knowledge of frameworks like React, Vue.js or Angular is also an advantage.
Development tools: This can include Solidity compilers like Solc, libraries like Web3.js or Ethers.js to interact with the blockchain, and smart contracts testing and deployment tools like Truffle or Hardhat.
Understanding Finance and Crypto Markets: Having a basic understanding of finance, crypto markets, and related economic factors will help you understand and develop DeFi and crypto-related applications on Web3.
Distributed Technologies: Understanding distributed concepts and technologies like IPFS, Swarm or Whisper is necessary to work with distributed data storage and transmission in a Web3 environment.
Creativity and Logical Thinking: Being able to think logically and creatively to solve complex problems and develop innovative applications in a decentralized environment is a key factor for a Web3 developer.

However, keep in mind that Web3 related technology and tools are evolving rapidly, so staying educated and updated is important to becoming a successful Web3 developer.

Web3 is a very broad topic, just one of its applications, such as crypto, requires us to spend a lot of time to understand and grasp. And similar to how crypto has, is, and will change many people’s lives, other applications of Web3 will create a great shift in prosperity for the generations that are subject to change.